The Reds are currently level on points with Manchester City at the top of the Premier League and have a game in hand over the champions.

And after sneaking through their Champions League group stage, Jurgen Klopp’s charges are preparing to take on Bundesliga champions Bayern Munich on Tuesday in the last-16.

Liverpool made it all the way to the final of the competition last season, missing out in the final to Real Madrid in Kiev.

And while fans would love to see a European challenge once again this season, many could be forgiven for wanting to sacrifice another run to the final this time around in exchange for domestic honours.

Liverpool news: Sami Hyypia thinks his former team can compete on two fronts (Pic: GETTY)

The Reds have not won a league title since 1990 and with only 12 games remaining they are in with a great chance to end the 29 year hoodoo.

But Hyypia, who won the Champions League with the club in 2005 after a stunning comeback against AC Milan in Istanbul, says that a club like Liverpool should want to keep challenging on both fronts.

“We were in the final of the Champions League last year and the mindset will be to go one step further,” Hyypia told the Liverpool Echo.

“We made some great additions to the squad last summer and the team is looking even stronger. There's no reason why we can't go all the way this time around.

Liverpool are level on points with Man City at the top of the Premier League (Pic: GETTY)

“It's going to be tough but it's possible”

Sami Hyypia

“Just because Liverpool are doing so well in the Premier League that doesn't mean that the Champions League becomes less important.

“It's going to be tough but it's possible. You want to keep challenging for both trophies for as long as possible.

“It makes it more interesting for the supporters. This is what they want – seeing their team competing for the two biggest trophies.”

A European challenge and Premier League challenge might seem less daunting for Klopp - who is yet to win a trophy with Liverpool - due to the fact that they have already been eliminated from the FA and Carabao Cup.

Liverpool news: Bayern have not looked themselves this season (Pic: GETTY)

And with Bayern not playing well this season on a consistent basis, the Reds may feel that the German’s are there for the taking - even with Virgil van Dijk missing in the first leg at Anfield.

“Bayern haven't done that well in their domestic league this season but they are still dangerous,” Hyypia added.

“We cannot afford to under-estimate them. We have to go full on in both these games.

“Virgil will be missed but I'm not too worried. That creates an opportunity for someone else to step up and take more responsibility. There are other players who can take his place.

“We need to be very sharp from the off in the first game. Ideally, you want a lead to take over to Munich.

“I know Bayern quite well and I think their weakness is in defending counter-attacks. We aren't that bad at counter-attacks and I can see us scoring a few goals against Bayern in that manner over the two legs.”